Espoo plans 1.53 billion euros in spending for 2027

Espoo city manager Kai Mykkänen has proposed a 2027 budget with operating expenditure of about 1.53 billion euros and a projected surplus of 36 million euros, Yle reports. The city would spend around 40 million euros more on services than this year, while continuing to cut administrative costs.

The proposal keeps Espoo in a three-year financial adjustment programme aimed at reducing borrowing by 220 million euros. That requires annual savings and additional revenue of about 70 million euros. The proposed spending is 2.7 per cent higher than this year’s forecast.

Spending on early childhood education and education would rise by about 14.2 million euros. The city says the increase would support changes in the student population, more upper secondary school places and stronger reading skills. A monthly additional charge of 50 euros per child for families using service-voucher daycare centres is also proposed for removal, at a cost of about 1.4 million euros to the city.

Employment services spending would increase by about 7.9 million euros, including costs for unemployment benefits, training, coaching and financial support. Culture spending would fall by about one million euros through reductions in staffing, premises and service costs.

Despite the tight financial situation, Espoo plans to invest about 54 million euros in schools and daycare centres in 2027. Work to build or renovate 10 schools and 15 daycare centres is planned, alongside construction of a football stadium and city theatre in Tapiola. Other major projects include a city rail line between Leppävaara and Kauklahti, and swimming halls in Tapiola and Espoonlahti.

About 28 million euros of investments scheduled for 2026 to 2029 would be postponed because of changes to project timelines. The city would finance its investments through its annual operating result and new borrowing.

Espoo expects to save about 7.3 million euros in staffing costs in 2027, rising to 9.7 million euros by 2029. Following this autumn’s co-operation negotiations, measures that could lead to dismissals are estimated to affect 80 employees. A further 60 positions are expected to disappear by 2029 through retirements, the end of fixed-term contracts and the removal of vacant posts. Mykkänen said no further staff cuts are currently planned.

The city also expects to raise about 10 million euros through parking and stormwater fees. It has allocated about 1.35 million euros for youth employment vouchers over 2027 to 2029. The city council is due to decide on the budget on 3 December.